Undesirable outputs are often produced together with desirable outputs. This joint production of good and bad outputs is typically ignored in traditional measures of productivity since "prices" are typically unavailable for bad outputs. Here we introduce a directional distance function and use it as
✦ LIBER ✦
Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach
✍ Scribed by Rolf Färe, Shawna Grosskopf, C. A. Knox Lovell and Suthathip Yaisawarng
- Book ID
- 125771465
- Publisher
- MIT Press
- Year
- 1993
- Tongue
- English
- Weight
- 244 KB
- Volume
- 75
- Category
- Article
- ISSN
- 0034-6535
- DOI
- 10.2307/2109448
No coin nor oath required. For personal study only.
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This paper deals with the estimation of the shadow prices of pollutants with a nonparametric directional distance function approach, where the inefficiency involved in the production process is taken into account unlike the previous studies. The directional vector, which is critical to the estimatio